McDonalds shares still below the previous week lows – analysis 01-07-2016

McDonald's shares ended Thursday trades higher by (0.85 point) or (0.71%) of the previous closure reaching 120.35 level as the lowest level recorded the week before, where this rebound came after reaching the support zone between 116.00 and 112.90, after its sideway trades below 124.80 resistance level, after passing the level 124.80, as this level contributed the bullish direction for the previous medium and long trades, also coincides with breaching the channel’s support shown above during the current trades, comes after the price formed a support at 116.00 level, with the continuous support from the SMA 50 and 100.

Holding below 124.80 level pushed the price for the decline to retest the support level of 116.00 again, which may extend to 112.90 support as the channel’s final target.

Generally; the bearish direction remains as long as the price holds below 124.80 resistance.